Ready to make your home improvement dream a reality? It’s essential to have the right type of insurance and the right amount of coverage first!
Insurance should be in place during and after construction. If you’re considering a remodeling project, it’s essential to contact your agent before the process begins. Waiting until the project starts or is already finished can be an expensive mistake, so be sure to take the following essential steps first:
1. Discuss home improvement plans with your agent. Ask about updating your homeowner’s policy, and ask whether other types of insurance will be needed for protection during the construction process. Only those who are qualified to perform DIY projects should attempt them. People who are not construction workers should not help unless there is sufficient liability coverage for their protection. Many homeowners must raise their no-fault medical protection limit for such workers. For a larger project, it is best to consider a “course of construction” policy. This covers the home during the building process from weather or theft damages.
2. Make sure the contractor is covered. Before allowing a contractor to start work, ask to see his or her insurance policies. Contractors should carry both workers’ compensation and commercial general liability insurance. If one of the insured contractor’s workers sustains injuries, that individual will not be able to sue the homeowner. Contractors who are unwilling to provide insurance documents should never be hired.
3. Store all receipts and records. Be sure to take photographs before, during, and after the remodeling project. This provides a virtual history of what the property looked like during each phase. Hold on to all contracts from contractors, and be sure to save the receipts for all materials purchased. Keep receipts for any other belongings bought for the home during the project as well.
4. Update insurance policies again after the project. Let your agent know when any home improvements are completed, as insurance amounts may need to be increased following a major renovation. All of the records and receipts may need to be copied and sent to the insurance company. This helps them assess needs and assign accurate values for the improvements. Your agent will be able to recommend any coverage needed for more expensive items. You may need additional liability coverage if a pool or spa was added, or an umbrella policy may be the right solution for this situation.
Be sure to ask your agent about discounts as well! When you install smoke detectors, stronger doors, deadbolt locks, or burglar alarms, they may qualify for discounts. Some insurers also offer more significant discounts to people who install more sophisticated burglar alarm systems, sprinkler systems, fire alarm systems, or other devices.
If you’ve updated your plumbing, electricity, roof, or windows, those may also qualify for discounts. This is especially true if any energy-saving features were installed. In areas prone to intense storms, shutters, reinforced roofs, and shatterproof windows could also earn you a discount, so be sure to ask your agent about what your insurance company offers.
Don’t forget: If a remodeling project is the result of a growing family, be sure to consider your other insurance needs, such as a life insurance policy, as well.